Professional Scepticism Means That the Auditor Should

question 33

Multiple Choice

Professional scepticism means that the auditor should:

• A) not accept the representations of management.
• B) approach the audit with a questioning mind.
• C) consider that management is mostly honest.
• D) only consider written representations from the audit client.

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Definitions:

Decreases

A reduction in size, quantity, or level of something.

Equity Accounts

Accounts that represent the owner's or shareholders' interest in a company, reflecting the residual assets of the company after liabilities are deducted.

Debits

An entry recorded on the left side of a double-entry bookkeeping system that increases asset or expense accounts, or decreases liability, equity, or income accounts.

Credits

Credits refer to the accounting entry that either increases a liability or equity account, or decreases an asset or expense account.